TL rate levels increase sharply   

Stifel Nicolaus (www.stifel.com) reported strong yield gains for publicly traded truckload carriers in Q3 compared with Q3 of 2010. The Stifel industry sector Snapshot for the TL sector showed a gain of 7.8% in revenue per loaded mile excluding fuel surcharge. That level of price increases has not been seen since the severe TL capacity shortages of 2004 and 2005. The rate impact of the heavy bid activity of 2009 is fading and contract rates are rising. Spot market TL rates rose last year but it takes longer for contract rates to expire, so those gains have been slower to materialize. It's been a pretty tough pricing market for the TL carriers for the last four years. Operating ratios deteriorated slightly over Q2 2011 and Q3 2010. Truck utilization also declined from both the prior quarter and same quarter prior year.

Graph reproduced with permission from Stifel Nicolaus. For more information contact: JGLarkin@Stifel.com.